Mr. Abdulah enjoys Coffee (K) and Tea (T), with the utility function U (K, T) = 3K + 4T. Question: - Draw the Indifference curve for Abdul if the price of a cup of coffee and tea is Rp. 3, - and Mr. Abdulah has Rp. 12, - to spend on Coffee and Tea. - If the coffee price drops to Rp. 2, - what effect will it have? He wants his satisfaction equal to the original Utility curve. Show it in the picture!
Mr. Abdulah enjoys Coffee (K) and Tea (T), with the utility function U (K, T) = 3K + 4T. Question: - Draw the Indifference curve for Abdul if the price of a cup of coffee and tea is Rp. 3, - and Mr. Abdulah has Rp. 12, - to spend on Coffee and Tea. - If the coffee price drops to Rp. 2, - what effect will it have? He wants his satisfaction equal to the original Utility curve. Show it in the picture!
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 9SQP
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Mr. Abdulah enjoys Coffee (K) and Tea (T), with the utility function U (K, T) = 3K + 4T. Question:
- Draw the Indifference curve for Abdul if the price of a cup of coffee and tea is Rp. 3, - and Mr. Abdulah has Rp. 12, - to spend on Coffee and Tea.
- If the coffee price drops to Rp. 2, - what effect will it have? He wants his satisfaction equal to the original Utility curve. Show it in the picture!
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